Ep.59 - Ali Crooks on Trade Management Techniques - Part 1
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In this episode:
Ali Crooks talks trade management. Ever wonder how, or even if, you should move your stop? When to run a trade to T2 or T3? Ali has the answers.
We get a bit exuberant and swear a lot. Sorry Mum.
Owen then remembers that he messed up his backtesting, has to redo it all, and has a small cry.
We look forward to live trading our new trading system
Tom reveals his secret for hyper-accurate backtesting
Trader Interview - Ali Crooks of Traders Support Club - Risk Management Part 1: Effective Trade Management
This is the the first part of a two part series on Risk Management. Today’s guest is Ali Crooks, Founder and Head Educator at Traders Support Club. For those who don’t know, The Blokes are currently in the middle of a training programme with Traders Support Club, receiving mentoring from Ali and his Team.
Part two will be out in a few weeks and features Martin Dimitrov. Martin is on of TSC’s main educators. He will focus on Money Management and how he ensures he manages the systemic risk in his overall trading strategy.
This interview is all about trade management techniques. Effective trade management is absolutely essential, but is one of the hardest things to get right. Owen spends a good chunk of this episode bleating about not being able to manage his trades once he has hit the buy or sell button.
Ali is here to put him straight.
Trade Management Masterclass
Ali talks about stop loss management. When to move your stop to break even, how to trail your stop effectively and how to monitor the efficacy of your approach. Also covered is profit taking. Should you run your trades; how long for?
Psychological pitfalls are everywhere here and Ali gives us a rundown on how to prepare to succeed by ensuring a good trade management psychology.
Trade Management - what you do once you are in a trade - is as important as how you choose your trade entries, but receives a lot less attention from traders. Ali Crooks gives us an absolute masterclass today.
Quality Trades not Necessarily Winning Trades
We are now at the point in the course where we are ready to start live trading the system we have learned. This doesn’t mean we have to trade a ‘live account’ yet (i.e one with real money), although Tom hates demo so much he is going to!
But Ali is a big believer in worrying about taking ‘quality’ trades rather than ‘winning’ trades. If you have a proven, backtested strategy and you focus on trading that strategy as perfectly as possible, then the profit will take care of itself.
Owen will be demo trading the system for a few weeks and sending the data to the TSC team. Ali talks about only giving a green tick or a red cross instead of looking at profit or loss. The question is - did I stick to my rules? Is this a quality trade.
Once you can put together a spreadsheet of green ticks, then you are good to go ‘live’ and put your real money on the line.